Another Done Deal
Paper products – Paper and envelope manufacturer.
The business needs cash flow to support growth in the paper products industry and pay overseas creditors pre-shipment. Despite operating profitably and effectively, servicing and security issues prevent it from securing bank credit. The directors do not want the risk of offering property security to any lenders.
Australian Invoice Finance provided an invoice finance facility at 85% of debtors owing. The client managed the collections and AIF was able to assist with all other credit functions such as advice on slow debtors. AIF pays the remaining 15% of the invoice value, less a fee, upon receipt of outstanding invoices. AIF and the client mutually agreed on this type of debtor funding solution.
AIF’s invoice finance facility was very competitive against the traditional overdraft option but, unlike a bank loan, it did not require personal property as security. Finally, this paper products business is comfortably funded and operating well within its expanded cash flow. The future now looks very bright indeed.
Find out more about how AIF can help your business take control of cash flow.